Published 8:00 pm, Friday, August 20, 2004

Along with hosting the Olympic games, Athens will host some of The Dow Chemical Co.'s top customers this month.

To strengthen strategic business partnerships, Dow executives chose the Grecian venue to entertain leaders of companies from 30 countries across the globe. Guests of Dow will be staying on cruise ships during their visits, an alternative to scarce hotel rooms during the Olympics.

The company acknowledges that at a time when cost-cutting measures are weighing heavily on employees and their families, spending money on entertainment might seem frivolous, but officials consider it an investment. "It's a way to rebuild some relationships that have been strained," said spokeswoman Terri McNeill.

As the chemical industry struggles with skyrocketing costs for essentials like energy and feedstocks, it's also had to pass some of those expenses on to customers.

"If you're a seller calling on a customer to tell them we're raising prices, having a personal relationship can make a big difference - in keeping the account and sharing why we need the increase," said Tim King, vice president of sales for chemicals and intermediates/performance chemicals and thermosets for North America.

Dow's sales volume has been steadily increasing, but a portion of the upturn is a result of across-the-board price hikes averaging 8 percent since the first quarter 2004. There also were price increases in 2003.

Dow President and Chief Operating Officer Andrew Liveris, who will move into the chief executive officer position Nov. 1, says customer entertainment is critical in building and retaining business.

Relationships with some customers have declined in recent years, he said, in part because some felt the company has not been very attentive.

"The easiest way to build our business is by growing with our existing customers," Liveris said. "We need to work on improving those relationships. Well-focused, carefully managed customer entertainment is one way to do just that. Ultimately, it's not a question of 'how can we afford to do customer entertainment,' but rather, 'how can we afford not to do it?'"